I don't know if there are any official rulings on overtakes like this in the real world. I have had to abandon my proper racing line multiple times because someone will brake into the inside line, and instead of hitting them for it, and making them pay for a careless overtake, I let them have the line, and do my best to hold the outside. Of course as soon as they do that once, I just ride the inside and don't give them a chance to do it again.
I've read all sorts of attempts at rules in real automotive racing which attempt to define "position." Front bumper ahead, a-pillar ahead, front wheels, etc. I know once position is established, both drivers are generally responsible for maintaining a race line which allows for both cars to navigate the track (width providing.) Your video at Autumn Ring clearly shows that the AI respects the last part of the rule, provided you respect (which you did) the rule as well. Only more testing will tell. I still can't put my finger on why the AI "feels" less human than Forza 3. Thanks for opening a thread which supports open discussion.